statement of operations for dogwood community hospital for the years ended 20×0 and 385572

statement of operations for Dogwood Community Hospital for the years ended 20X0 and 20X1 are shown in Exhibit 4 19a and 4 19b. Compute the following ratios for both years: Current, acid test, days in accounts receivable, average payment period, long term debt to net assets, net assets to total assets, total asset turnover, fixed asset turnover, operating per adjusted discharged, operating expense per adjusted discharge, salary and benefits as a percentage of total operating expense, return on total assets, and operating margin. After calculating the ratios, comment on Dogwoods liquidity, efficient use of assets or activity ratios, revenues, expense, and profitability, and capital structure relative to its industry benchmarks for its respective bed size listed in Exhibit 4 16a. Cite at least two meaningful ratios per category. Assume that Dogwood is a 250 bed facility for the analysis and its adjusted discharges were 6,300 for 20X0 and 6,400 for 20X1. Exhibit 4 18 Selected ratios for Buxton Hospital and the industry benchmarks Capital Ratios Industry Benchmarks Buxton Hosp(20X1) Buxton Hosp(20X0) Debt service coverage 2.50 3.90 2.90 Times interest earned 2.20 2.90 2.00 Net assets to Total assets 0.45 0.60 0.60 Long term debt to net asset 0.71 0.40 0.40 Exhibit 4 19a Statement of operations for Dogwood Community Hospital Dogwood Community Hospital Statement of Operations (in thousands) for the years Ended December 31, 20X1 and 20X0 Revenues 20X1 20X0 Net patient service revenue $52,000 $53,000 Other revenue 751+ 781+ Total operating revenues 52,751 53,781 Expenses Salaries and benefits 33,000 30,000 Supplies 10,200 10,550 Depreciation 2,900 3,100 Provision for bad debt 5,500+ 6,200+ Total operating expenses 51,600 49,850 Operating income 1,151 3,931 Excess of revenues over expense 1,151 3,931 Increase (decrease) in net assets 1,151 3,931